From earlier posts, some of you will be aware we have lost£8000 a year salary and as we have already used the 15% reduction (allowances added in that we were initially told we couldn't have). We have been told we must have a 12 month extension as the creditors won't accept anything less, although other posters appear to have had 6 month extensions.
Also, we have been advised to pay minimum of £100 per month (as the creditors won't accept anything less) but disposable income is not that much.
Have asked for the payments to date to be taken as full and final (we have paid in a higher than estimated dividend so far and advice from the experts on here indicated on the information we provided this would be the best route) but we have been advised this isn't possible due to the fact our IVA company say we can pay in at least £100 per month for the rest of the IVA (24 months) plus the 12 month extension - just wondered if this sounded right before we signed up to anything?
If they applied for payments to date to be accepted as F&F and that was rejected, surely we could ask for the reduction instead. However, if they apply for the reduction (on a payment highter than disposable income), I doubt the creditors wouldn't then be interested at looking at accepting payments to date as F&f!!
We are extremely worried at the minute as signing up to payments more than our disposable income can only surely lead to further issues!! I would lose my job if we had to go bankrupt so starting to get stressed out by this now!!
Can any of the experts please advise if they would follow this approach??
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
Hi random lady unfortunately i'm not an expert so can't really give you any answers to your questions but good luck and i hope your contributions todate are taken as a F and F, best wishes. x
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.
IVA COMPLETED August 2012, received Completion certificate 18.4.13.
If you have less than £100 it is not worth collecting and your IP should ask for payments to cease and the IVA to be concluded. Ultimately, the IP must put forward your offer so do not agree to an offer than is neither affordable nor sustainable. Stress to the IP that is must be a full and final based on funds to date and let creditors decide.
Thanks for that Michael - requesting a F&F on funds paid (over £23000) was the previous advice off this forum as well. At the minute, I am being told that we have to go with the £100 per month (I calculate disposable income as £59 and they calculate it as £84 but we would be expected to pay the additional £16 to make monthly payments of £100 by using funds from other allowances).
I will fight my corner on this one as we are in this position through absolutely no fault of our own but it's just reassuring to get expert advice so you know that you are going down the right road!!!
Last edited by Random Lady on Tue Aug 21, 2012 2:07 pm, edited 1 time in total.
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
Forgive me for not knowing all the circumstances around you salary loss but on what you have posted above you might find that the IP and creditors are working on the basis that whilst you have at the moment lost the £8k per annum you may be able to get it back at some point in the next 3 years. So by keeping you on a £100 per month they will be able to claw more back when your circumstances change.
But you can't be expected to continue in an IVA essentially agreeing to higher payments than you can realsitically afford on the off chance that your situation may improve over 3 years??? a few more months maybe but 3 years is a long time to commit to when things are extremely tight and I would also argue that making up £8k pa is a pretty big ask in the current economic climate.
I think the difficulty is when you still have 3 years to go, persuading the creditors to accept a F&F at this stage and I can see why your IP is perhaps suggesting to try and meet £100 a month for the time being, however I think the first clarification you need to establish is why there is a discrepancy in what you claim is your disposable income as opposed to your IP who sees it as higher?
Hi nickjohn - the loss of £8k pa is permanent, hubby has remained in his job but has been transferred onto days only and there is no chance of going back on shifts. He was lucky enough to not be one of the 45 who got made redundant.
Hi Lem - agree that 3 years to go is a lot to ask the creditors but we've already paid in higher dividends for the 3 years we've been in the IVA, forwarded half of any additional Bank Holiday payments received and paid in additional £108 per month for the last 2 years that wasn't scheduled to be added in until month 28 (so we feel we've done what we can to ensure creditors received what they should).
We have discussed the difference betwen the £59 and £84 and one item they say I haven't got an allowance for (although it was approved in 2010 along with several other things that have been allowed), the other 2 were items that are genuine expenditure (and are claimable on the list of things) but these are not to be allowed. I would be happy to go with the £84 but I've then got to find the additional £16 per month, which will be difficult for 3 years!
Hubby's situation will not change and they will not receive a cost of living increase and I work in the NHS so no chance of an increase there.
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
8K is a lot to lose in salary and harms the iva survival...and with 3 years to go....bad timing. I said in another post just a few days ago that creditors will only go so far in accepting less as what was agreed in any iva variation.
The creditors have to show great debt forgiveness. Sorry but It is the stuff of iva nightmares. However you have to have faith creditors with accept your ultimatum. In these situation there are little to say how creditors will go. Goodluck.
Hi nomoremoney - appreciate your comments but it would only be 3 years if there was a 12 month extension imposed. I know it's not looking good but we've paid such a large proportion in already (over and above dividend quoted on each review), it would be a awful to end up bankrupt at this stage. Not only would I lose my job, we'd lose the house and that would not be pleasant for the kids (none of this is their fault - in fact if one of the creditors had logged our payments to them correctly in the first place, we wouldn't be in half the difficulty we are now!)
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
Things have changed again!! We are in the process of having papers drawn up for a variation meeting, although I am still concerned about signing up for a monthly payment higher than our disposable income. Hubby's employers are now talking of removing an allowance that was built in to their salary so that would be a further £2000 (est) which will leave us in no posisition to make payments.
Obviously I'll be letting our IP know, but how does that affect us with the variation process now?
Thanks
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
Has one of the experts come across this situation before?? We seem to be launching from one disaster to another at the minute.
Have emailed IVA company but waiting for their reply.
F&F approved May 13 - just awaiting Completion Certificate - moving to a new Debt Free life !!
We have come across cases where circumstances have changed numerous times and it should not mean the failure of the IVA. Perhaps your IP may now look at payments to date and ask creditors for the IVA to be closed down as it seems the most sensible thing to do.
